26. If a certain stock has a beta greater than 1.0, it means that a the stock\'s

Question

26. If a certain stock has a beta greater than 1.0, it means that a the stock's return is more volatile than that of the market portfolio. b. an investor can eliminate the risk by combining it with another stock that has a negative d. the stock is less risky than the market portfolio 27. beta c an investor will earn a higher return on his stock than that on the market portfolio eam a Most professional investors use the S&P; 500 as a general gauge of total market performance. a. True b. False In a declining market, a portfolio manager should attempt to increase the overall beta of the portfolio. 28. a. True b. False

Explanation / Answer

26.

Beta is a numerical value of market systematic risk.

Beta for the whole market is 1.

If it is more than 1, the market is more volatile.

Answer: a

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